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Public  Utilities 
and  Progress 


(Second  Edition) 

March  1,  1912 


BY 


H.  M.  BYLLESBY 


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^4  /a//:  before  the  Commonwealth 
Edison  Company  Section  of  the 
National  Electric  Light  Association 
Handel  Hall ,  Chicago,  December 
5,  1911 

N  . . 


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Henry  M.  Byllesby 

PRESIDENT 

H.  M.  BYLLESBY  &  COMPANY 
Chicago 


Public  Utilities  and  Progress 

wlTH  particular  pleasure  I  respond 
to  the  subject  you  have  selected 
for  me.  I  entered  the  electrical  side  of 
the  public  utility  business  over  thirty 
years  ago.  I  entered  it  at  about  the 
time  that  Mr.  Edison  had  announced 
to  the  world  the  inventions  which  his 
unconquerable  genius  and  industry 
had  achieved.  I  entered  this  business 
at  about  the  same  time  as  your  hon¬ 
ored  chief,  Mr.  Samuel  Insull,  and  in 
fact  he  and  I  were  contemporaneously 
fellow-employes  of  branches  of  the  in¬ 
dustries  created  by  Mr.  Edison. 

It  is  a  decidedly  dangerous  thing  to 
offer  an  old  veteran  an  opportunity  to 
deal  in  reminiscenses.  However,  you 
have  taken  this  risk,  you  have  invited 
me  to  address  you  this  evening,  and 
you  must  likewise  take  the  conse¬ 
quences. 

I  believe  every  new  art,  every  new 
industry,  takes  the  direction  of  its 


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Public  Utilities 


growth  and  that  its  subsequent  fort¬ 
unes  follow  along  the  lines  which  are 
the  natural  results  of  the  character  of 
its  founders. 

No  industry  has  ever  been  more 
fortunate  in  its  founders  than  the 
electrical  part  of  the  public  utility  busi¬ 
ness.  The  great  founders  of  this  busi¬ 
ness,  of  whom  the  pre-eminent  chief  is 
of  course  Mr.  Edison,  working  with 
Mr.  Coffin,  Mr.  Thomson,  Mr.  Insull, 
Mr.  Rice  and  innumerable  others,  all 
established  progress  as  their  ideal. 

Speaking  as  a  veteran  and  with  the 
privileges  that  pertain  to  that  inevit¬ 
able  class,  I  wish  to  add  that  all  of 
these  great  founders  and  leaders  of  the 
electrical  industry  were  actuated  by  a 
conscientious,  enthusiastic  and  loyal 
devotion  to  their  art  supported  by  a 
continuing  and  tireless  industry,  which 
I  believe  has  not  had  its  parallel  in  the 
history  of  anv  other  art  or  any  other 
industry. 

These  were  all  men,  who,  in  the  first 
place,  were  endowed  by  nature  with  a 
more  than  usual  proportion  of  brains. 
Beyond  this,  and  without  which  their 


and  Progress 


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brains  would  simply  have  resulted  in 
making  them  erratic  geniuses,  was  an 
absolute  faith  in  the  inventions  and  in 
.  the  art,  and  collaterally  with  this  was 

their  unremitting  energy,  courage  and 
industry.  Any  enterprise  started  by 
men  of  this  type  could  not  fail  to  be 
progressive. 


The  long  distance  from  the  electrical 
generator  of  twenty  or  fifty  horse 
power,  the  crude  apparatus,  and  the 
short  transmission  distances  of  thirty 
years  ago,  to  the  thirty  thousand  horse 
power  generator,  the  transmission 
lines  of  over  two  hundred  miles,  the 
single  power  house  with  a  generating 
capacity  of  approximately  two  hun¬ 
dred  thousand  horse  power,  and  the 
present  universality  of  the  electrical 
industry — the  intimate  extent  to  which 
it  enters  into  every  detail  of  our  mod¬ 
ern  life,  of  our  modern  civilization 
is  a  road  which  has  been  marked  with 
painstaking  effort,  with  a  dogged  de¬ 
termination  to  overcome  obstacles,  and 
with  a  continuing  faith  which  has 
rendered  possible  the  business  with 


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« 


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Public  Utilities 


which  you  gentlemen  are  privileged  to 
occupy  yourselves  today. 

I  submit  that  this  progress  from  the 
laboratory  experiment  of  thirty  years 
ago  to  the  great  commercial  engine  of 
today  is  a  progress  which  has  not  had 
its  parallel  in  the  history  of  civiliza¬ 
tion. 

Public  utilities  are  finally  coming 
into  the  position  which,  in  fact,  they 
should  always  have  occupied.  Due  to 
the  mistakes  of  the  past,  the  newness 
of  the  art,  and  the  crudity  in  the  early 
stages  of  the  apparatus  and  machinery 
the  public  utility  business  was  placed 
before  the  public  until  very  recently 
in  a  very  false  position  and  was 
thoroughly  misunderstood.  Today  the 
opinion  of  conservative,  thoughtful, 
fair  minded  men  throughout  the  coun¬ 
try  is  crystalizing  into  the  belief  which 
is  fast  being  put  in  practice  by  govern¬ 
ing  bodies,  as  well  as  by  the  thought 
of  the  citizens  themselves,  that  the 
public  utility  should  necessarily  be  a 
regulated  monopoly. 

I  think  it  is  only  justice  to  say  to 
you  that  in  bringing  around  this  better 


and  Progress 


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feeling  on  the  part  of  the  public,  in 
bringing  about  the  better  relations  be¬ 
tween  the  public  utility,  its  officers  and 
employes  and  the  public  and  the 
municipalities,  no  one  in  this  wide  field 
has  done  more  notable  or  more  effect¬ 
ive  or  more  conscientious  service  than 
the  president  of  the  companies  which 
you  gentlemen  serve. 

Upon  any  thoughtful  analysis  a  pub¬ 
lic  utility  to  fulfill  its  destiny  in  any 
proper  sense  must  necessarily  be  the 
very  essence,  the  pith  and  the  spirit 
of  progress.  In  the  interests  which  I 
represent,  and  which  lead  me  into  all 
parts  of  our  great  country,  I  have 
found  from  an  experience  spreading 
over  thirty  years  that  the  entire  tone 
of  a  community,  particularly  those  of 
lesser  size,  from  the  standpoint  of 
whether  or  not  that  community  is 
to  be  a  bright,  live,  progressive  com¬ 
munity,  or  on  the  contrary  to  be  a 
dead,  stagnating,  retroactive  commun¬ 
ity,  will  depend,  and  to  a  larger  extent 
than  any  of  us  realize,  upon  the  man¬ 
agement  and  the  conduct  of  the  util¬ 
ities  in  that  community. 


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Public  Utilities 


In  many  notable  cases  I  have  had 
the  actual  experience  with  the  organi¬ 
zation  of  which  I  am  the  head  of 
creating  a  renaissance,  a  new  birth, 
in  a  stagnant  community  by  our 
organization  —  actuated  by  industry, 
equipped  with  experience,  imbued  with 
high  ideals — purchasing  the  utilities  in 
that  given  stagnating  community,  re¬ 
organizing  them,  putting  new  life  into 
them,  setting  before  the  public  correct 
business  methods,  and  treating  the 
public  in  a  just  and  fair  and  responsi¬ 
ble  manner.  I  have  seen  communities 
that  appeared  to  be  hopelessly  dead 
changed  into  bright,  hopeful  and 
active  communities  simply  by  such  a 
reorganization  in  plant,  and  in  man¬ 
agement  of  the  public  utilities  of  that 
community  as  I  have  endeavored  to 
describe  to  you. 

Another  point  to  which  I  wish  to  call 
your  attention  is  the  fact,  particularly 
where  the  principal  utilities  in  any 
given  community  are  consolidated, 
that  in  nearly  every  case  such  a  con¬ 
solidated  utility  company  becomes  the 
leading  industry  in  that  community. 


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It  very  frequently  happens  that  in 
point  of  gross  income,  in  point  of 
dollars  and  cents  flowing  into  its  treas¬ 
ury  in  any  given  year,  it  will  have  the 
largest  income  in  the  given  community. 
Its  influence  is  of  a  broad  and  far 
reaching  character.  The  utility  enters 
into  the  daily  lives  of  the  inhabitants 
of  any  given  community,  goes  into 
their  offices,  into  their  homes,  into 
their  places  of  amusement,  into  their 
churches,  and  if  that  utility  is  operated 
either  as  a  clean,  progressive,  modern, 
fair  minded  and  just  organization,  or 
if  unfortunately  it  is  conducted  along 
opposite  lines,  you  will  inevitably  see 
that  community  reflect  which  of  the 
two  courses  the  public  utility  elects  to 
follow.  I  believe  this  statement  cannot 
be  successfully  challenged. 

Ancillary  to  this  is  the  fact  that  the 
man  who  is  at  the  head  of  that  utility 
in  that  town  is  ipso  facto  one  of  the 
leading  citizens  of  the  town,  if  not  the 
leading  citizen.  Consequently  upon 
him  rests  the  responsibilities  that  are 
peculiar  to  this  profession,  which  are 
peculiar  to  the  position  which  he  occu- 


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Public  Utilities 


pies,  and  altogether  serious  and  wholly 
honorable. 

Due  to  modesty,  due  to  being  im¬ 
mersed  in  the  perplexing  and  trying 
details  of  this  business,  the  manager 
of  the  utility  may  not  appreciate  his 
commanding  position,  but  whether  he 
desires  it  or  not  he  necessarily  occupies 
it  in  his  community.  He  should  recog¬ 
nize  it  and  so  should  all  of  his  em¬ 
ployes,  and  they  should  so  govern 
their  conduct,  first,  on  the  part  of 
the  manager  because  he  has  already 
reached  that  commanding  posit  ion,  and 
secondly,  on  the  part  of  his  assistants 
and  employes,  because  they  have  rea¬ 
son  to  believe  that  in  the  tremendous 
growth  and  expansion  of  this  business, 
if  they  measure  up  to  the  opportun¬ 
ities  open  to  them,  they  will  in  a 
greater  or  shorter  time  be  occupying 
the  position  which  today  is  occupied 
by  the  manager. 

I  think  this  thought  is  one  which  is 
worthy  of  very  serius  consideration. 
It  is  the  thought  which  when  believed 
and  appreciated  will  necessarily  add  to 


and  Progress 


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the  dignity  and  the  responsibility  of 
the  public  utility  manager  and  the 
public  utility  servant.  Each  of  you, 
taking  your  inspiration  from  the  head 
of  your  organization  and  from  your 
various  superior  officers,  should  feel 
that  upon  you  rests  responsibilities  of 
no  ordinary  nature.  Whether  you  will 
or  no,  you  are  necessarily  in  the  public 
eye,  and  judged  by  the  entire  experi¬ 
ence  of  this  industry,  and  provided 
you  are  equal  to  your  opportunities, 
you  will  surely  advance  to  greater 
responsibilities  and  to  greater  promi¬ 
nence  as  the  older  men  from  whom 
you  have  taken  your  education  and 
your  inspiration  are  called  to  move 
further  onto  the  firing  line  and  to  face 
the  common  destiny  of  humanity. 

Thus  the  moving  forward  step  by 
step  of  the  entire  organization  to  take 
the  places  of  those  whose  work  is 
finished,  whose  energies  are  no  longer 
called  for,  is  forcing  upon  you  younger 
men  the  responsibilities  of  the  solution 
of  the  difficult  problems  of  which  you 
will  have  but  little  conception  until 


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Public  Utilities 


you  reach  the  responsibilities  which 
are  before  you,  and  which  you  will 
reach  if  you  are  true  to  yourselves  and 
to  the  opportunities  offered  to  you. 

While  pursuing  this  thought  may 
I  call  your  attention,  believing  that 
you  agree  substantially  with  what  I 
have  stated,  to  the  present  condition 
throughout  our  country  of  dissatisfac¬ 
tion,  of  misunderstandings  and  un¬ 
rest — a  condition  which  if  it  is  not 
checked  will  go  to  greater  lengths  and 
produce  disaster. 

This  condition  arises  from  many 
causes.  Perhaps  the  principal  cause  is 
that  in  the  rapid  development  of  this 
country  and  all  of  its  industries, 
notably  and  perhaps  pre-eminently  the 
rapid  development  of  all  branches  of 
the  public  service  business,  we  have 
outgrown  the  former  methods;  we 
have  outgrown  the  governmental  ma¬ 
chinery.  Along  with  this  is  the  painful 
fact  that  most  of  us,  in  the  exacting- 
duties  as  we  apprehend  them  in  our 
various  callings,  have  not  felt  that  we 
had  the  time  to  bring  to  bear  upon 


and  Progress 


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matters  of  public  welfare,  to  bring  to 
bear  upon  governmental  matters,  any 
of  that  thought  and  industry  and 
energy  which  has  made  us  successful 
in  our  regular  callings. 

The  natural  result  has  followed. 
Legislation  and  governmental  admin¬ 
istration  have  been  yielded  up  to  the 
politicians,  to  those  who  quite  largely 
are  devoid  of  any  trade,  any  calling, 
any  profession;  I  regret  to  say  to  men 
who  as  a  rule  have  accomplished 
nothing  in  any  walk  of  life  excepting 
in  the  realm  of  politics,  and  we  have 
the  natural  result. 

Questions  which,  irrespective  of  any 
political  lines  of  cleavage — irrespective 
of  geographical  locations — should  be 
settled  upon  a  fair  and  just  basis  by 
men  of  experience,  of  responsibility 
and  fairness  meeting  together,  are 
made  political  issues,  and  we  have  had 
for  the  past  few  years  and  still  have 
the  reign  of  the  demagogue,  the  muck- 
racker,  and  the  anarchist. 

Today  there  is  an  enormous  chasm 
between  the  selfishness  and  arrogance 


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Public  Utilities 


of  great  wealth  on  one  side,  and  the 
equal  selfishness  and  arrogance  of  pro¬ 
fessional  -agitators  and  labor  leaders  on 
the  other  side.  Unless  this  chasm  can 
be  bridged,  unless  better  relations  can 
be  established  between  capital  and 
labor,  the  conditions  in  our  country 
will  surely  be  worse  for  a  long  while 
before  they  are  better. 

1  have  been  a  corporation  man  all 
my  life.  In  a  general  and  broad  sense 
I  started  at  the  foot  of  the  ladder.  I 
have  toiled  in  the  machine  shop,  in  the 
foundry,  in  the  manual  labor  part  of 
the  business,  and  I  have  toiled  and 
labored  on  the  far  more  exasperating 
and  difficult  problems  and  exacting 
duties  which  come  to  those  who  are 
at  the  head  of  organizations. 

Mv  experience  in  middle  age, looking 
back  over  a  reasonably  long  and  active 
career,  is  that  the  great  bulkof  men 
in  all  walks  of  life  are  fundamentally 
honest  and  fair-minded,  but  due  to  the 
selfishness  which  exists  in  conspicuous 
cases — due  to  the  presence  of  the 
trouble  maker — these  wrongs  and  op- 


and  Progress 


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pressions  which  could  be  quickly 
righted  by  fair-minded  people  are  al¬ 
lowed  to  rankle  and  fester  and  produce 
the  unrest  and  disasters  with  which  we 
are  confronted  today. 


